MINIMUM WAGE
WORKING. THRIVING. TOGETHER.
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What is the Minneapolis Minimum Wage Ordinance? |
The Minimum Wage Ordinance sets a new hourly minimum wage for work performed in Minneapolis. It is now in effect for all businesses.
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HOW MUCH IS THE MINNEAPOLIS MINIMUM WAGE?
Until July 1, 2024, the minimum wage rate depends upon an employer’s size, as defined by total number of workers. “Small businesses” – those averaging one hundred (100) or fewer workers – have more time to adjust to a higher wage. The required minimum wage rate will increase until reaching $15 and then continue increasing yearly to account for inflation.
HOW DO I DETERMINE MY BUSINESS SIZE UNDER THE NEW MINIMUM WAGE ORDINANCE?
To determine an employer’s size, count the total number of persons performing work for compensation. Add each person per week for each week of the previous calendar year and divide by 52. Include full-time, part-time, jointly-employed, paid interns, seasonal, and temporary workers, no matter where they are located. This calculation determines whether an employer is considered “large” or “small” for purposes of the ordinance (see questions 13 and 14). If an employer is a franchise or a full-service restaurant, see questions 18 and 19 below.
Scenario (a): Robot World, a business in Minneapolis, employed 30 full-time workers, 22 part-time workers, and two temp workers each week last year. Robot World averaged a total of 54 (30 + 22 + 2) workers per week. It is a “small business” for purposes of the minimum wage ordinance because 54 is less than 100. Scenario (b): Tree World is a business in Minneapolis. It is open all year round, but there is a lot of variation in the number of persons working during the year. For 12 weeks of the year, it employs 150 full-time workers. During the slowest 10 weeks, it only employs 25. For the remaining 30 weeks, it employs 50 workers. Tree World has to do some math. It looks like this: 12 weeks x 150 workers = 1,800 10 weeks x 25 workers = 250 30 weeks x 50 workers = 1,500 1,800 + 250 + 1,500 = 3,550 Divide 3,550 by 52 (weeks in a year) to get the average number of employees, like this: 3,550 / 52 = 68.27 employees (weekly average for one year) Because 68.27 is less than 100, Tree World is a “small business” under the minimum wage ordinance. DO TIPS COUNT TOWARD THE MINIMUM WAGE?
Tips and gratuities do not affect the new minimum wage owed to employees. No employer may directly or indirectly credit, apply, or utilize gratuities towards payment of the minimum wage.
Scenario: Tina is a server at a restaurant in Minneapolis. On average, she receives about $8 an hour in tips. Does that count towards the minimum wage her employer must pay her? No, it does not. The employer must pay her at least the minimum wage-not counting tips or gratuities. I am part of a city-approved training or apprenticeship program. Does the minimum wage apply?
Yes it does apply, but there are some special considerations. For city-approved training and apprenticeship programs, employers must pay employees under the age of twenty (20) not less than eighty-five (85) percent of the minimum wage rate, rounded up to the nearest nickel, for the first 90 days of employment. After the first 90 days, the employer must pay no less than the applicable minimum wage rate.
Scenario: Jade, age 18, just started work at a city-approved training program at a large business in Minneapolis. What is the minimum wage the employer must pay Jade? On Jan.1, 2018, the minimum wage for large businesses will be $10 an hour. For Jade’s first 90 days at the training program, the employer must pay her at least $8.50 an hour (or 85 percent of the applicable minimum wage). After 90 days, the employer must pay her at least $10 an hour (the applicable minimum wage rate for large employers in 2018). For a listing of city-approved programs or to download an application, see the employer resources page. DOES THE ORDINANCE APPLY TO AN EMPLOYER WHO ISN’T LOCATED IN MINNEAPOLIS BUT HAS AN EMPLOYEE PERFORMING WORK IN MINNEAPOLIS?
Regardless of where an employer is located, it must pay at least the Minneapolis minimum wage rate, for time worked in the City of Minneapolis, to any employee who performs at least two hours of work in a calendar week within the City of Minneapolis. For purposes of this rule, a calendar week runs from Monday to Sunday.
I WANT TO REPORT A VIOLATION, BUT I’M AFRAID OF RETALIATION. WHAT SHOULD I DO?
Retaliation against an employee for exercising or attempting to exercise any rights available under the Municipal Minimum Wage Ordinance is strictly prohibited.
Material changes in job duties or hours, formal disciplinary action such as documented warnings, or employment termination may be considered retaliatory. Aggressive enforcement to protect employees’ rights will be pursued by the Department in these types of cases. Employees should report violations in the drop-down tab at the top of this webpage. WHERE CAN I RECEIVE MORE INFORMATION?
The entire FAQ's document is downloadable on the employee or employer resources pages in the download centers. Labor Standards Enforcement Division staff in the Minneapolis Department of Civil Rights will also provide technical assistance or answer questions from anyone. Contact (612) 673-3000 (311) or (612) 673-2157 (TTY) or email minwage@minneapolismn.gov for more information.
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Checks maps left and below or enter a street address to identify if it is located inside or outside the City of Minneapolis:
gis.hennepin.us/property/map/default.aspx
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